Brompton Lifeco Split Corp.

Brompton Lifeco Split Corp.

April 18, 2007 09:29 ET

Brompton Lifeco Split Corp. Closes Initial Public Offering at $73,000,000

TORONTO, ONTARIO--(CCNMatthews - April 18, 2007) - Brompton Funds Management Limited (TSX:LCS.PR.A)(TSX:LCS) is pleased to announce that Brompton Lifeco Split Corp. has completed its initial public offering of 2,920,000 Preferred Shares at $10.00 per share and 2,920,000 Class A Shares at $15.00 per share for gross proceeds of $73,000,000. The preferred shares have been rated Pfd-2(low) by Dominion Bond Rating Service Limited. The preferred shares and the class A shares begin trading today on the Toronto Stock Exchange under the symbols LCS.PR.A and LCS respectively.

Brompton Lifeco Split Corp. has been created to provide investors with a diversified investment in the four largest Canadian life insurance companies, utilizing a split share structure on a low cost basis.

Class A shareholders will receive the benefits of monthly cash distributions targeted to be 6.0% per annum based on issue price, low management fees and the opportunity for growth in net asset value. Preferred shareholders will receive attractive quarterly distributions of 5.25% per annum based on issue price, supported by the high credit quality of the underlying assets. Highstreet Asset Management Inc. has been retained to selectively write covered call and cash covered put options to generate additional distributable income for the fund.

The syndicate of agents for the offering is being co-led by RBC Capital Markets, CIBC World Markets Inc., and Scotia Capital Inc., and includes BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, Raymond James Ltd., Wellington West Capital Inc., Blackmont Capital Inc., IPC Securities Corporation and Research Capital Corporation.

For further information, please contact your financial advisor or visit our website at

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the fund's publicly filed documents which are available from SEDAR at Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    (416) 642-6008